DEFENCE FORCE RETIREMENT AND DEATH BENEFITS ACT 1973 - SECT 98GB Increase for pensioners aged 55 or older

(1) The increase provided for by subsection 98B(1), for a pensioner aged 55 or older at the commencement of a prescribed half - year (the relevant prescribed half - year ), is the 55 - plus percentage of the pensioner's relevant rate of pension benefit in relation to the relevant prescribed half - year.

(2) This is how to work out the 55 - plus percentage for the relevant prescribed half - year:

Method statement

Step 1. Work out the prescribed percentage for the prescribed half - year.

Step 2. Use section 98GD to work out the LCI percentage for the prescribed half - year.

Step 3. Take the higher of the percentages worked out in steps 1 and 2. (If they are the same, use the step 1 percentage.) This is the CPI/LCI percentage.

Step 4. Take the indicative pension amount for the prescribed half - year immediately before the relevant prescribed half - year. This is the current indicative pension amount.

Step 5. Work out the amount that is the CPI/LCI percentage of the current indicative pension amount and add it to the current indicative pension amount. This is the CPI/LCI result.

Step 6. Use section 98GE to work out the MTAWE result.

Step 7. If the CPI/LCI result is the same as or higher than the MTAWE result, the 55 - plus percentage for the prescribed half - year is the CPI/LCI percentage. If the CPI/LCI result is lower than the MTAWE result, the 55 - plus percentage for the prescribed half - year is the percentage worked out under section 98GF.

(a) the CPI/LCI result in step 5 is the same as the current indicative pension amount; and

(b) the MTAWE result in step 6 is the same as or lower than the current indicative pension amount;

(d) subsection 98B(1) does not provide for an increase for a pensioner aged 55 or older at the commencement of that half - year.

Commonwealth Consolidated Acts

DEFENCE FORCE RETIREMENT AND DEATH BENEFITS ACT 1973 - SECT 98GB